Government mobilizes $1B in loan financing for infrastructure development in 2025

Government mobilizes $1B in loan financing for infrastructure development in 2025 Cambodia's public debt reached $13.05 billion in 2025, an 8.3% increase from the previous year, according to the Ministry of Economy and Finance. Last year alone, the government secured $1 billion in new concessional loans, primarily to fund priority infrastructure projects like transport, energy, and irrigation. External debt remains dominant, accounting for 98% of the total stock, with China serving as the largest creditor at 31%. Despite the increase, the debt remains "sustainable and low risk," with a debt-to-GDP ratio of 18.7%, significantly below the 55% safety threshold. The government also paid $678.3 million in debt servicing in 2025, reflecting prudent fiscal management while prioritizing long-term economic growth and social welfare. (Source: Khmer Times)

Cambodia's GFT exports increase by more than 6% YoY in the first two months Cambodia's garment, footwear, and travel goods (GFT) exports grew by 6.19% YoY in early 2026, reaching $2.59 billion. According to the General Department of Customs and Excise, the sector now constitutes nearly 50% of total national exports. Knitted apparel remains the dominant product, followed by non-knitted clothing and leather goods. This resilience is supported by over 1,800 factories and a workforce of 900,000, primarily women. Despite global protectionism and competition from regional hubs like Vietnam, Cambodia's competitive labor costs and trade preferences sustain demand in the U.S. and EU. Experts emphasize that while growth remains strong, the industry must prioritize automation and supply chain integration to move up the value chain and maintain its economic momentum through 2026. (Source: Khmer Times)

Cambodia and China sign a $35M cashew export agreement to strengthen agricultural trade Cambodia has secured a major agricultural breakthrough by signing a $35 million agreement to export in-shell cashew nuts to China. The deal, signed between China Bonded Port Group and Men Sarun MDR Co., Ltd., specifically targets M23-type cashews. While the initial shipment is valued at $35 million, officials project trade volumes could surge to $400 million as the partnership matures. Overseen by the Ministry of Commerce's Export Promotion Task Force, the agreement aims to integrate Cambodian agro-industry into global value chains. Beyond immediate sales, the collaboration focuses on strengthening bilateral investment and sustainable economic development. This milestone reflects Cambodia's strategic push to diversify exports and optimize its agricultural potential within the competitive Chinese market. (Source: Khmer Times)